A Poll of 400 People from Village 1 Showed 250 $\neq$

question 1

Multiple Choice

A poll of 400 people from village 1 showed 250 preferred chocolate raspberry coffee to the regular blend while 170 out of 350 in village 2 preferred the same flavour. To test the hypothesis that there is no difference in preferences in the two villages, what is the alternate hypothesis?

• A) p₁ - p₂ < 0
• B) p₁ - p₂ > 0
• C) p₁ = p₂
• D) p₁ - p₂ \(\neq\) 0

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Definitions:

Complementary Pricing

A pricing strategy where products that complement each other are sold together at a price lower than the sum of their individual prices.

Prestige Pricing

A pricing strategy where the price is set higher than average to create a perception of exclusivity and high quality, appealing to status-conscious consumers.

Skimming Strategy

A pricing strategy involving setting high prices initially and then lowering them over time.

Market-Entry Barriers

Obstacles that companies face when trying to enter a new market, which can include regulatory policies, capital requirements, and established competitor advantage.